– Manulife Financial Corporation will acquire 75% of Comvest Partners Credit Partners for US$937.5 million in upfront cash.
– Comvest is a middle market direct lending private credit manager with US$14.7 billion on its platform.
– Manulife will align its US$3.7 billion Senior Credit team with Comvest, forming an US$18.4 billion private credit platform.
– The new platform will be co-branded as Manulife | Comvest.
– Comvest and Manulife’s private credit businesses are highly complementary, with Comvest focusing on non-sponsor and specialty lending, and Manulife on sponsor-backed lending.
– The transaction includes potential additional consideration of up to US$337.5 million, contingent on performance targets.
– Manulife has the right to purchase the remaining 25% of Comvest through a put/call mechanism.
– The transaction is immediately accretive to Manulife’s core EPS, core ROE, and GWAM’s EBITDA margin.
– The deal will be fully funded with cash on hand and will result in less than a 3-point reduction in Manulife’s LICAT ratio.
– Phil Witherington, President & Chief Executive Officer, Manulife: “With a continued focus on disciplined, strategic capital deployment, our acquisition of Comvest Credit Partners further enhances our private markets platform by adding differentiated capabilities in private credit.”
– Robert O’Sullivan, Chief Executive Officer, Comvest Credit Partners : “The synergies between Comvest and Manulife have been clear, we share a disciplined approach to credit, a client-first mindset, and a strong focus on team culture.“
– Paul Lorentz, President & CEO, Manulife Wealth and Asset Management: “We are excited to see the continued growth and maturity of private credit as an asset class, providing flexible, tailored financing to businesses that are underserved by traditional lenders, while offering investors attractive, risk-adjusted returns. “
– Michael Falk, Founder, Comvest: “Manulife distinguished itself through their long-term investment mindset, deep credit expertise, and cultural fit with our team.”
– Anne Valentine Andrews, Global Head of Private Markets, Manulife Wealth & Asset Management: “With this acquisition, we will create a world-class alternative credit platform that can meet the distinct and growing needs of Manulife’s 19 million institutional, retirement and retail clients globally.”
– Michael Falk, Founder of Comvest, will become Senior Advisor and Board Member of the aligned business.
– Robert O’Sullivan, Co-Founder and CEO of Comvest, will be appointed Head of the aligned business and will report to Anne Valentine Andrews, Global Head of Private Markets.
– The new Manulife | Comvest platform complements Manulife’s public market alternative credit platform, Manulife | CQS Investment Management.
– AMG will exit its position in Comvest’s credit business.
